bailout

Tag Archives for bailout.

The Most Creative Argument Yet For A Second Airline Bailout

Jun 24 2020

And the Allied Pilots Association, which represents pilots at American Airlines, has a creative suggestion. They want the federal government to buy up all the middle seats or more specifically “purchase enough seats on each flight to eliminate the need for any passenger to sit next to a stranger.”

The union says it “has begun discussing the SEATS concept with key lawmakers” to get it included in a CARES Act followup or passed as a standalone. Watch your wallets.

Continue Reading »

The Government Has Now Given Out CARES Act Grants To 287 U.S. ‘Airlines’. There Aren’t 287 Airlines!

Jun 19 2020

When the Treasury Department first reported on airline subsidy payouts under the CARES Act I was shocked to learn that 96 airlines were receiving payroll support grants. Who knew there were 96 airlines?

The Treasury Department wasn’t done yet, and there were still a couple of billion dollars to hand out. This week they updated their report, and they’ve committed $24,157,445,417 out of an appropriated $25 billion in payroll support grants, and funds are going to 287 airlines. Who knew there were 287 airlines?

Continue Reading »

Watch Your Wallets: Transportation Secretary Says Let’s Talk About Another Airline Bailout In The Fall

Jun 04 2020

Transportation Secretary Elaine Chao isn’t ruling out another bailout and says it’s something to discuss and consider in the fall, if airlines need one.

However there was absolutely no reason to bail out the airlines and for the overall economy – and for workers who will lose their jobs anyway – the bailouts were actually destructive. Still, the President doesn’t want mass layoffs one month before the election.

Continue Reading »

President Obama’s Chief Economic Advisor: Airline Bailouts Were “Dumb,” Had No “Conceivable Logic”

May 17 2020

Larry Summers was President Obama’s chief economic advisor, Bill Clinton’s treasury secretary, and President of Harvard University. He’s one of the smartest people on the planet his arguments, both when you agree or disagree, are force to be reckoned with.

Summers explains that by trying to keep all of the airlines alive, you assure that they all have excess capacity and that they’re all unprofitable. That has long-term consequences for the whole economy, “the failure to allow the appropriate economic adjustment is kind of the mistake that Japan made in the 1990s. We need as we realize how long this is going to play to be aware of those risks.”

Continue Reading »

Airline Lobbyists Changed Bailout Language To Create Loophole That Let Them Reduce Employee Pay

May 09 2020

Despite taking CARES Act payroll protection subsidies from the federal government, airlines including Delta, United, and JetBlue have cut worker hours. This means that employees receive less pay, and airlines spend less on payroll, despite requirements not to furlough workers or reduce rates of pay through September 30.

American Airlines CEO Doug Parker said “I was there when we were working on CARES and that wasn’t the intent or meaning of it.” Parker is right, that wasn’t how the CARES Act was supposed to work. The original language – that got changed – has now been leaked.

Continue Reading »